Why haven't gas prices gone down?

Gas prices shoot up immediately at the pumps when any little thing disruptive to production or refining happens even though it takes at least 2-4 weeks to refine it and ship it. Then, the price slowly drops like a feather floating in the breeze. It's profit taking pure and simple and it's done because why not? I think there's local non-verbal price fixing that can't be proved. The public can't not buy gas so make more profit when you can.

I have a good friend who had a gas station along an interstate for years and the fact that he wouldn't really answer how that worked told me the answer.
 
grampi said:
Production and exploration restrictions have been lifted, and OPEC has actually increased production, and yet gas prices remain high? Why?
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By design, our local natural gas market is in the process of being globalized, oil producers still feel prices aren’t high enough to uncap more wells or build more refining cap , the Midwest has had primary supplies cut by Canada via pipelines to export land locked crude to the ocean resulting in drives to force more ethanol in fuel to make up for low grade low octane fuels on offer.

Further one of the US most productive oil fields is technologically at peak oil, further fracking is not stopping a steady erosion of its max production output, it is expected to continue to decline and not be financially feasible to keep operating at current rates.

I’m honestly surprised we haven’t seen gas prices surge even more than it already has this year but all evidence says we are in a recession, freight companies are dropping like flies and miles traveled is in the meh category. Still worth noting fuel November 2024 was $2.4x this year it has stayed around $3 most of the time.

Due to federal law and technology changes I fully expect NG prices to skyrocket which will drive up all other energy and heating costs within the next year or two.

https://www.instituteforenergyresea...ing-lng-exports-and-data-center-demand/?amp=1

gfh77665 said:
No, everything else did not "skyrocket". Inflation is just 2.7% - 2.9%, not 9%+ like is was months ago.
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Yet the normal things I buy in November 2024 were about half the price they are now, I keep physical receipts and I can’t find anything close to the same price I buy now vrs then.
 
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Historically, gas prices rise an average of 18% over the summer driving season. That did not happen this year. Gas rose just 3% on average through this summer. Almost just statistical "noise". Gas is $2.42 all around me. Now if you live on the west coast or something, that's a different issue.
 
gfh77665 said:
Historically, gas prices rise an average of 18% over the summer driving season. That did not happen this year. Gas rose just 3% on average through this summer. Almost just statistical "noise". Gas is $2.42 all around me. Now if you live on the west coast or something, that's a different issue.
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No it happened in February instead then never came down. The average percentage of ethanol ACTUALLY IN FUEL measured this year has stayed near the legal limit all year.

Usually we have it fall to about 3% certain times of the year but no dice this year.

Our fuel blenders ONLY run the legal ethanol limits when the octane feedstocks are more expensive than ethanol.
 
Analog-1 said:
Gas just jumped from 2.79 a gallon to 3.29 a gallon today in SE Michigan. This game continues week after week.
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It also seems like a silly game in South Texas for the past few years. We have a Valero and a Murphy Express near our house (10 cents off with Walmart+ membership), and every few weeks it's the same thing. Sharp increase followed by an incremental decrease back to where it started. Filled up my van at Murphy for 2.43 yesterday (with 10 cent discount); today every station is 2.89.

The price will drop about a nickel per day until it's back around 2.50, then lather, rinse, repeat. I've fortunately got my timing down pat.
 
RDMgr said:
I may be wrong but I think we import less than 15% of our oil demand from OPEC nations. I think most of our demand is produced domestically.
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Doesn't matter much. Oil is sold on the world market.
US refineries are optimized for different types of crude oil; while the US is a net exporter of petroleum and produces more than it consumes, it imports roughly 70% of its crude oil from Canada, Mexico, and other countries to ensure refineries operate efficiently and try to control costs.
 
Analog-1 said:
Gas just jumped from 2.79 a gallon to 3.29 a gallon today in SE Michigan. This game continues week after week.
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Yup a game , crooks
Some places here are 2.89 some 2.69 some 2.59 some 2.99 if one can do 2.59 so can the rest , it's just greed ....
 
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Hall said:
Look around.... When's the last time you saw a gas station ? What you see now are convenience stores that also sell gas. One of the larger chains in the midwest, Speedway (now owned by 7-11) had a slogan of "The convenience stores of ... Speedway".

Regarding Buc-ee's, estimates are that their sales are 2/3 inside store stuff vs 1/3 fuel.
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Maybe but their pumps are busy as hell
 
Rmay635703 said:
Further one of the US most productive oil fields is technologically at peak oil,
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The Bakken has already peaked and is producing as much water as oil. I assume that's the one your referring to. They can't afford to drill more shale wells at current prices. But your about a year or two early. There is still lots of supply and slowing demand. We could see oil fall from here some more.

Refining capacity is a whole other pandora's box.
Rmay635703 said:
Due to federal law and technology changes I fully expect NG prices to skyrocket which will drive up all other energy and heating costs within the next year or two.
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It won't take federal laws or tech changes. Nat gas is pretty much free at the field level as a byproduct to shale oil. They can't afford to drill more oil wells at current prices, and they sure can't afford to drill gas wells. Nat gas will increase all by itself once they start capping bakken wells. Natural gas prices and also hence electricity can only go up in price from here.
 
maduroman said:
Maybe but their pumps are busy as hell
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At $3/gallon, it costs us less than $40 to fill our SUV's tank. We go inside and spend $75. Google search says, based on surveys done with shoppers, the average amount spent inside is $58 per visit.
 
AZjeff said:
I think there's local non-verbal price fixing that can't be proved. The public can't not buy gas so make more profit when you can.
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I've mentioned this before, but around here, it's called "the Speedway effect". That chain more or less controls the pricing and when they adjust up or down, there's a trickle effect of neighboring stations following suit.
 
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